The US branch of Binance, a prominent cryptocurrency company, has recently undergone a series of layoffs following allegations of securities law violations and a subsequent asset freeze by regulators. According to sources familiar with the matter and employee social media posts, approximately 50 individuals were let go. However, Reuters was unable to independently verify the exact number or the positions affected.
Despite attempts to reach out through emails and calls, Binance.US has not provided any response or comment on the situation. The affected employees, primarily from the legal, compliance, and risk departments, preferred to maintain anonymity due to the sensitive nature of the issue.
The Securities and Exchange Commission (SEC) filed charges against Binance and its founder and CEO, Changpeng Zhao, on June 5, alleging that Binance.US was established as part of a deceitful scheme to evade US securities laws, which are designed to safeguard American investors. Binance, on the other hand, has asserted that it will vigorously defend itself against these accusations.
Additionally, the SEC has filed a lawsuit against BAM Trading, the operating company of Binance.US, claiming that it deceived investors with regards to non-existent trading controls on its platform. In light of these developments, the SEC has sought a court order to freeze Binance.US’ assets, which include over $2.2 billion held in cryptocurrency and approximately $377 million in US dollar bank accounts. The SEC’s concern is that the funds may be moved offshore by the exchange.
Binance.US has criticized the SEC’s request, deeming it unnecessary and maintaining that the allegations put forth by the regulatory body are unfounded. Meanwhile, two Binance.US employees have announced their departure from the company on LinkedIn, with one referencing the recent round of layoffs.
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